Rebates removed, cut to curb exports

By Gong Zhengzheng (China Daily)&\At9iF)\LG#A

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|n6A,Vj9Vzy/@a The government will eliminate or cut tax rebates for more than 2,800 export items from July 1 - in the boldest move yet to rein in exports since it joined the World Trade Organization in 2001.

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The affected items account for 37 percent of all export products, the Ministry of Finance announced yesterday. "eG|"CI_

f|$@m_,H1i6I Export tax rebates for 553 "highly energy-consuming and resource-intensive" products, such as cement, fertilizer and non-ferrous metals, will be eliminated, the ministry said. nn'}#N$y-l"n4^E;tQ

^I8C(fN%O [ Rebates for another 2,268 products, described as "easy to trigger trade frictions", will be slashed from 8-17 percent to 5-11 percent. They include garments, toys, steel products and motorcycles. )y6nj6Vd

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yL_3PR)x2g Yesterday's announcement follows the imposition or raising of export tariffs on 142 categories of goods effective June 1. The products include steel billets and non-ferrous metal minerals.
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KUqU%a Both steps are part of the policy package designed to control soaring exports and bloating trade surplus. 2r'UU\,}
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From January to May, exports surged 27.8 percent year-on-year to $443.5 billion; and the trade surplus rocketed 83.1 percent to $85.7 billion, according to Customs statistics. Y1w^.fk+he4[ Z'l
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The huge surplus has aggravated such problems as trade conflicts with other countries and pressures on China to revalue the renminbi, as well as excessive liquidity at home, the ministry said.
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y&}3G|Y4h Liu Xueqin, a researcher with the Chinese Academy of International Trade and Economic Cooperation affiliated to the Ministry of Commerce, said: "The new policy will restrain exports because it affects a broad range of products."
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Domestic producers say they are already feeling the pressure from the export control measures.
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9AJ6DvA3M;S "Our steel companies are at threat (of losing foreign markets). But we can understand the overall significance of the policy," Qi Xiangdong, deputy secretary general of the China Iron & Steel Association, told China Daily.
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The association predicted earlier that, as a result of the export disincentives, the country - the world's top steel producer - would this year export no more or even less than last year.
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Steel exports totaled 43 million tons in 2006, a growth of 110 percent over 2005. 6UGvB)uk9F3En
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The finance ministry said the new policy will also help slow down investment in fixed assets and reduce over-capacity; and lead to sustainable development.
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Many industrial sectors, such as steel, cement and motorcycles, are believed to have excessive production capacity in relation to domestic demand. nR
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9a``R2S0] (China Daily 06/20/2007 page1)(bB4sFw*z)U}|
From: [url]http://www.chinadaily.com.cn/china/2007-06/20/content_897889.htm[/url]['kN B?h
[url]http://english.mofcom.gov.cn/aarticle/counselorsreport/asiareport/200706/20070604802827.html[/url]
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If you can read Chinese, please visit [url]http://bbs.fobshanghai.com/thread-590670-1-1.html[/url]

i see ,thanks

bad news or good news

:( :( :P :P EUNf{ s.r&lFp&I
nothing good for us

Bad news for us.

I believe that is a very bad news for all the exporters, for some of the industrial which already in bad situation will getting worse. fundenmental industrial will have a big hit, as the price completing were big already, I hope they would try to cut cost and use cheaper part, otherwise the export product will less competable in the market.

it is a bad news

:(  bad news for chinese export company, we just only could quote the highter price to cover this cost!
*c(a WD)N$z2g on the other hand, the foreign  customers ask us  to cut down the price! Such like this!
pN]-N? y;~ SO hard to make more business in the future!

Low price can not help us always, but good quality and service.

new drawback policy

I AM WORKING IN FABIC TRADE COMPANY,THE RATE OF DRAWBACK IS 13% IN THE PAST.
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{%PM NOW IT DECREASE TO 11%.IT SEEMS SMALL  CHANGE ,BUT THE EFFECT IS VERY BIG .+x-l,V7}(A#B
BECAUSE  THE  PROFIT IS VERY thin.

A coin has two sides.  Only good quality matters.

Post at 2007-6-27 17:52 Profile | P.M.

i agree!:victory:

it's a bad news for everywhere in China,however it's good news for other countries.yes,a coin has two sides.how can we do in this policy?

:lol  right

It's a bad news

yes,it's might be a good news for other country!

it is a bad news :(

the only way to rise your return is reducing your cost. but we also need to improve our competitive power.

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F(j-~G6z-K0N [[i] Last edited by  sharemine at 2007-7-3 08:34 [/i]]

Yes, it did made us urgent to ship out goods before July.

really bad news for our export line!

I think the adjustment is  a deep affluance to our economy.and it will be more active .we will get new rules to play games.

Reply #1 vip's post

It's not a good news,but in the future is good news , Is't it?

it's a tenderce

the mean of the Finance is to elimilate the export of  the nonrenewable source.W]M qc.E+`r2@9r
This item is good for China

Reply #12 Ginawung's post

Maybe the government wanna companies in our country to improve the quality of the products and service. so i think it maybe a good news for our entering into the world .

be blind to!

At the beginning, it is bad for the trading company and factory too, but it's good for the future. Like I am doing business for the hardware tools and accessories, which is too much direct influence by the raw material, like the brass, the zinc, the alum.,the nickel.,etc.the plating cost the price now comparing with before, it really crazy. The main reason is not the less production of the factory, but the shortage of the domestic supply, too much percent be exported. The new rebate policy helps now, the raw material's price is lowing down.x(@4pwh

:W"hs `zk%d'c [ So, like they said, quality & service also very important, not only price, we have to find other solution to make our benifit.

I am lucky to have a very good customer, who is also my best friend, in the past years, we share the rebate rate percent, and always make the account complex. Now this new policy help us to clean those points, the feel is good, even though we lost some percent of the money.

:victory: I agree that it is a bad news for ou compang at first,but it will be a good news for the futhure.;\ d:U.K8\Q
I am a freshment here.but I heared of sth about that effects.

i don't care about it.SJ,y)f"l#ir
hoho~~best wishes to you~~

A coin has two sides

Bad new for chinese export company,but it benifit for our country.4ULE^D
in the furture competition ,only qulity and service can stand our company in the world market.